Buying your next home

Weigh up your options carefully

Buying your next home is of course more familiar the second (or third) time around, but there are still lots of factors to take into careful consideration before you take the big step. ITP are trusted Australian finance professionals, so you can rely on ITP Home Loans to give you the right advice when it comes to buying your next home.

Should you use bridging finance?

In the best possible world you’ll manage to dovetail the sales settlements of your current and next homes. However, it’s usually not this easy. Here are some factors to consider in the real estate chain:

If you can’t buy and sell simultaneously, to avoid bridging finance costs it’s generally best to sell your first home before buying your second. This usually means renting for the interim. But do remember the rental costs involved, and also the financial and emotional tolls of the double move this process entails.

If you do buy your next home before selling your last, there are several different types of bridging finance available. And if you don’t want to commit yourself to a bridging loan, there’s also the option of a deposit bond. Your ITP Home Loans broker is eminently qualified to help you with these important decisions, and also to find you your type and rate when it comes to a bridging loan.

Using your current home as equity

Equity is the market value of your home minus the remaining balance of your home loan. Your current home may well have increased in value since you bought it. This, combined with any extra repayments on your mortgage you may have made, mean that you may be able to use the equity in your property as a deposit for your next one.

Keeping your first home

You might be considering turning your current apartment or house into an investment property, rather than selling it. However, there are a number of financial reasons why this may not be a good idea. You’re probably better off buying a different investment property once you’re settled into your next home. The only real basis for keeping your existing home is if your current locale is certain to increase dramatically in value in the near future. Talk to your professional ITP Home Loans broker – he or she will be able to advise you on your best course of action.

Don’t forget the costs involved

It may be a while since you bought your current home, so keep in mind that there may be additional costs involved this time around. These can include a bridging loan, stamp duty, agent’s fees, removalist charges and rent. Your ITP broker will be able to help you work out your usual expenses, so you’ll be able to stay in control, right through the process.

Your professional ITP Home Loans advisor can talk you through the pros and cons of keeping your first home. You can email us, or make an appointment to see an advisor face to face. Alternatively, give our helpful ITP Home Loans consultants a call today on 1300 387 487.